Peter Jones

Registered with
Friday 13th September 2013

Latest Comments

Total Number of Property118 Comments: 7

Peter Jones

15:23 PM, 12th March 2014, About 8 years ago

RLA Probes Shelter Anti Landlord Propaganda

I think I've said before on these pages that although Shelter purport to be a charity (I think) they are no more than an anti-landlord lobby group... Read More

Peter Jones

20:27 PM, 19th September 2013, About 8 years ago

Housing Bubble fears - genuine or an overreaction?

If the question is "Is there a bubble?" I guess the next question is "What constitutes a bubble?"

As has already been said, in the most of the UK prices aren't doing anything very exciting, yet.

If we believe that inflation really is around 2.7/2.8% (and most of us would suggest that unofficially it's higher) prices in most areas are barely keeping up with inflation.

Depending on which measure you use the long term trend for HP increases is 5% - 8% pa on average and we are not even there yet. If prices are to catch up with the long term trend, they need quite a spurt (It might be that we are now in an era of a new trend line and so that won't happen)

I would have thought that we only need worry when average prices are consistently ahead of the long term trend

Whilst most of us are still looking at prices being below pre-crisis peak, and/or negative equity, I find it alarming that some seem to be trying to destabilise a recovery (by hitting sentiment) before it gets rooted

My guess is that the banks will be happy to see a jump, albeit gradual, to at least pre crisis price levels so that assets on their books match loans made against.

Plus perhaps a bit more for inflation over the last 5 years

Once we get there, depending upon how inflation is playing out, we might see some kind of effort to dampen things a little, but traditionally HP have usually been a couple of points ahead of inflation without doing anyone any harm.

I have to say it has annoyed me that a recovery from rock bottom, which hasn't even got close to "normal" levels of activity and price rises, has already been described as a bubble and I wonder whose agenda we are jumping to, and why.

A couple of years ago Mervyn King said words to the effect of "We must learn to stop calling any increase in asset value a bubble, and any fall in asset value a crash. Increases and decreases are a normal part of market activity".... Read More

Peter Jones

12:54 PM, 13th September 2013, About 8 years ago

Rics want a 5% annual price rise cap

Reply to the comment left by "Mark Alexander" at "13/09/2013 - 12:48":

As usual this morning I went onto the BBC News website just to catch up with the world only to find the headline “Bank Must limit House Price Booms… The Bank of England should use its powers to limit house price increases to 5% a year…a surveyors group says”.

Clicking through to the article I find that the ‘surveyors group’ is none other than The Royal Institution of chartered Surveyors, of which I am a Fellow.

Frankly, I don’t know what to say. Apparently this idea comes form our chief economist, but surely he can’t be serious?

Here’s the point.

In reality there is no single housing market in the UK, every region, city and town, even suburbs and streets, are different so what does this even mean? Does he mean prices should be capped to a 5% increase on average across the whole of the UK? If so an average plus 5% across the whole UK might mean plus 20% in London, and minus 5% or minus 10% in the north and/or elsewhere. Great for him if he lives in London, but the rest of us pay the price.

Perhaps with a London centric view it’s a case of ‘I’m alright Jack’. Prices in London and the south east might have recovered from the 2007 crash, but many of us are still waiting to catch up, and many are still in negative equity or still have properties worth less than were paid for them.

So does he mean that whilst London enjoys a 5% increase he wishes to condemn the rest of us to more years of negative equity and housing market depression?
If he doesn’t mean an average across the whole UK, and he means 5% for all properties, how can the Bank of England manufacture a 5% increase in Newcastle at the same time as capping London prices to only 5%. There would need to be different loan rates and different lending criteria in each part of the country?
And why 5%? Why not the long term trend rate of around 8%? Or, if he’s worried about house price inflation why not set the figure at 2%, like the Bank of England’s inflation target?

Frankly, it all seems a bit arbitrary.

Then there are moral and ethical questions that come out of this.
Are the RICS now officially abandoning free market economics? I certainly haven’t been consulted about that and given my approval for the trade body that represents me to give that view.

And, if we are to be even handed, is he prepared to suggest that ongoing we ask the Bank of England to cap price falls, or are we only concerned about rises. Same point again – does this mean that officially the RICS are happy to leave most of the population trapped in negative equity and below inflation house price increases whilst he, and his mates, in London, enjoy a steady and predictable 5% return on their property?

If we are going to peg property prices, why don’t we go the whole way and peg the price of gold, or stocks and shares.

To be honest, if anyone wants to peg anything, why not peg the price of oil, gas and electricity, I think most people would find that far more useful.

Let’s be honest, this is either a sound bite gone badly wrong, or he has been horribly misquoted.

Either way the idea is so ill-thought out as to be ludicrous and I am seething that my representative body could come up with such garbage.... Read More

Peter Jones

18:41 PM, 10th May 2013, About 9 years ago

Scottish Association of Landlords - dismayed by Shelter Cowboys Slur

Shelter have a very left wing, anti-landlord agenda. Although they purport to be, and are reported as being, a charity the totally non-objective content of their comments suggest they are clearly more of a lobby group whose sole rational seems to be to run-down private landlords.
Sadly, because they purport to be a charity, they get air time.
Peter Read More

Peter Jones

11:21 AM, 1st May 2013, About 9 years ago

Petition - DO NOT change tracker mortgage interest differentials

Glad to sign
Unbelievably outrageous behaviour by a bank. If a landlord had small print allowing them to double the rent once the tenant had moved in there'd be screams for regulation. In fact in any other field of commerce where the 'small print' allows one party to take financial advantage of the other (unsuspecting) party it would be rightly called a scam or a con - but the BOI thinks it can just get away with it. The lack of morality and integrity shown by BOI is stunning
Peter Read More